[Congressional Record Volume 143, Number 80 (Tuesday, June 10, 1997)]
[Extensions of Remarks]
[Pages E1170-E1171]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




CLARIFYING THE TAX TREATMENT OF AVIATION MAINTENANCE COSTS--PREVENTING 
                   COST INCREASES OF AVIATION SAFETY

                                 ______
                                 

                            HON. MAC COLLINS

                               of georgia

                    in the house of representatives

                         Tuesday, June 10, 1997

  Mr. COLLINS. Mr. Speaker, today I rise to introduce legislation that 
will clarify in the Internal Revenue Code what has historically been 
and should continue to be the tax treatment of expenses attributable to 
certain FAA-mandated aviation industry maintenance checks.

[[Page E1171]]

  The IRS has attempted to change the historical tax treatment of 
certain aviation maintenance expenses by denying the industry's ability 
to deduct those that arise from ordinary and necessary maintenance and 
repair of aircraft. Instead, the IRS is requiring that these 
maintenance costs be treated as nondeductible capital improvements. 
Previously I joined with several of my colleagues and asked Secretary 
Robert Rubin to reverse the agency's position. Although I was assured 
the issue would be studied and I would receive a response, to date I 
have received no reply.
  I strongly support a clarification of the tax treatment of these 
maintenance expenses so the aviation industry may continue to deduct 
these expenses. Doing so is important in order to prevent increasing 
the costs of aviation safety.
  I strongly encourage my colleagues to join this effort by 
cosponsoring this legislation.

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